In a world where data is increasingly considered a valuable resource, the protection of personal information is increasingly important. Organizations working with sensitive data face the challenge of protecting it while at the same time seeking to harness its value. This is where two crucial concepts of data masking come into play: data anonymization and pseudonymization. While both methods aim to protect privacy, they differ fundamentally in approach and purpose.
In this blog, we dive deeper into the differences between the two concepts. Whether you are a data professional or simply interested in how your data is protected, this blog offers valuable insights into the complex but fascinating world of data privacy.
Key Takeways
- Pseudonymization involves transforming personal data so that it is no longer directly traceable to a person.
- With pseudonymization, the original data must be preserved. If the original data is destroyed or re-identification is impossible, then pseudonymized data turns into anonymized data.
- Anonymizing personal data is adjusting data so that it can no longer be used to identify an individual. Anonymization is irreversible.
- For the GDPR, pseudonymized data is still personal data, anonymized data is not.
- The difference between anonymizing and pseudonymizing is that pseudonymized data can be made insightful again and anonymized data cannot.
Example masked data
Pseudonymization of personal data
Pseudonymizing personal data involves transforming data so that it is no longer directly traceable to a person. This involves removing directly identifiable elements, such as a name.
With pseudonymized data, the modified dataset is kept separately from the original data. With pseudonymized data, it is important that the original data is preserved. Should the data be destroyed for any reason or re-identification proves impossible, the data changes to anonymized data.
When pseudonymized data is shared with third parties or stored within the organization, it should still be treated as being personal data. Even though it is not immediately obvious who it is about.
You can think of data pseudonymization as a security measure. It lowers the privacy risk of data subjects and organizations processing this data.
What are the benefits of pseudonymized data?
- The chance of abuse of pseudonymized data in data breaches is smaller. If this data gets out on the street, it can only be traced back to a person if the original data is also known.
- Processing pseudonymized data is more likely to be permitted than “ordinary” personal data.
- Using personal data for a purpose other than that for which it was previously intended is previously permitted. So is processing special personal data and archiving it for public interest purposes.
Anonymizing personal data
Anonymizing personal data is also known as data masking. Data masking is a method that ensures that data can no longer be used to identify a person. Anonymizing data is irreversible. According to the GDPR, this also makes anonymized data no longer personal data. Anonymizing data is valuable, for example, when an organization wants to use data for statistical purposes, but it is not important to trace the data back to a person.
Anonymizing data should be done by an authorized person and within the applicable rules.
Benefits of anonymizing data
- When there is a data breach within your organization it does not cause problems because the data is no longer considered personal data.
- Data can be kept without problem.
- Data can be used without problem for other purposes such as statistical or analytical purposes.
What is the difference between data anonymization and pseudonymization?
The major difference between anonymization and pseudonymization is that pseudonymized data can be made insightful again and thereby lead to a person. Anonymization is irreversible.
With pseudonymization, anonymized data can be made insightful again with the right key. With the right key, it is then also possible to trace back to a natural person. With anonymization, it is not possible to retrieve the original data. The encryption of this data is irreversible.
In addition, pseudonymized data is still personal data for the GDPR and the GDPR rules still apply. Anonymized data is no longer personal data for the GDPR, so no GDPR rules apply.
Is your organization about to review its strategy with respect to processing personal data? If so, please contact us without obligation. We would be happy to help you pseudonymize or anonymize sensitive data in your database or documents.
Our solutions
Many of our clients are aware that they receive, store, retain and process documents in which personal data is visible to all or much of the organization. Meanwhile, these customers “cleaned up” by letting DataFactory or FileFactory software do its work. Curious about the possibilities? If so, please contact us.